Recent Changes in the Fiscal Architecture in India and Implications for Financing Climate Change Interventions

The recent changes in the institutional and fiscal architecture of the country following the constitution of NITI Aayog and release of report of the Fourteenth Finance Commission, have implications for public financing of a range of social sector as well as environment related government interventions in the country. Constitutionally, both Union and the State Governments are responsible for delivering on subjects falling in concurrent list and most of the subjects pertaining to Climate Change interventions such as promotion of clean energy resources, adaptation strategies in agriculture and other developmental sector, are part of concurrent list. Hence, given the shared responsibility of Union and State Governments on this issue, the present paper examines the overarching changes in the country's fiscal architecture due to the recommendations of the 14th FC and the report of the NITI Aayog constituted Sub-group of Chief Ministers and, how it would affect Government financing of environment and climate change related programmes. [CBGA Policy brief 4]